Bangladesh Bank has formed a Tk100 crore fund to encourage small merchants to adopt Bangla QR, with the fund to be increased if necessary, Governor Md Mostaqur Rahman said today (8 August).
Speaking at a Bangla QR workshop at Radisson Blu Chattogram Bay View’s Nilgiri Hall, organised jointly by Bangladesh Bank and the International Finance Corporation (IFC) under the “Cashless Digital Bangladesh” project, he said Bangladesh was drawing on neighbouring countries’ experience to expand digital payments.
The country currently records around 1 crore digital transactions a month, but the central bank aims to raise this to 1 crore a day by the end of the current fiscal year – a nearly 30-fold increase in about 10 months.
Limited smartphone use remains a major obstacle, with around 6 crore people still using feature phones. The government is working to provide affordable Android handsets. Users are willing to spend around Tk3,000, while manufacturers say such phones cannot be offered below Tk8,000.
Bridging the Tk5,000 gap could require around Tk30,000 crore, and initiatives are being explored to finance the investment, including instalment-based purchases through mobile operators.
Bangla QR use surges
Bangladesh Bank data show Bangla QR transactions rose from 7,23,378 worth Tk212.05 crore in January 2026 to 62,54,938 worth Tk1,475.95 crore in July – an 8.6-fold rise in volume and nearly sevenfold increase in value in six months.
Bangla QR merchants increased from 13,52,712 in May to 16,85,188 in June and 24,25,133 in July, representing 79% growth in three months and nearly 93% in 10 months.
Cash management costs Tk20,000cr
Md Parvez Anzam Munir, additional director of Bangladesh Bank’s Payment Systems Department-1, said cash management costs around Tk20,000 crore annually, covering printing, production, distribution, collection of worn notes and their eventual destruction.
He called the expenditure an “extreme luxury and waste” for a poor country and said greater digital payments could substantially reduce it.
Governor Mostaqur said digital transactions would improve transparency in business finances and reduce risks for small traders who rely on employees to handle money, including concerns over missing funds and irregularities. Digital payments could also provide an alternative to cash for extortion payments.
Bangla QR has been made mandatory for merchant licences issued by city corporations and municipalities, while institutions have been instructed to replace existing QR codes with Bangla QR by 2026. Instant settlement of Bangla QR transactions into merchants’ accounts has also been introduced.
Deputy Governor Md Kabir Ahmed said Bangla QR would help build a financially inclusive society. Around 24 lakh merchants now use the system, with about 2 lakh daily transactions worth nearly Tk50 crore. Greater use could also help raise the tax-to-GDP ratio.
Merchants warned of fraud
The workshop warned merchants about scams involving fake calls and SMS impersonating banks, mobile financial services or government agencies, as well as phishing, hacking, malware, fake customer care and fraudulent websites. They were advised not to share personal information, PINs or OTPs or click unfamiliar links.
Chaired by Payment Systems Department Executive Director Md Sirajul Islam, the workshop was attended by Governor Md Mostaqur Rahman as chief guest, Deputy Governor Md Kabir Ahmed and IFC representative Hasan Shahriar as special guests. Around 120 merchants, including 20 women, participated.
Three sessions covered Bangla QR use, benefits and transaction security. Hasan Shahriar said IFC’s monthly digital transaction target had risen from 20 lakh to around 1 crore. Senior Bangladesh Bank officials, including Executive Director Md Hanif Mia, also attended.
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